Heat oven to 350°F.
Place a greased wire rack on an aluminum foil-lined rimmed baking sheet.
Arrange bacon on rack, taking care to not overlap.
Rub with brown sugar; sprinkle with cayenne pepper.
Bake for 15-20 minutes or until bacon is just crisp, turning once.
When cool enough to handle, chop bacon. Set aside.
Beat cream cheese and sour cream in a large bowl until blended.
Stir in the water chestnuts, blue cheese and bacon.
Cover and refrigerate for 30 minutes.
Serve with crackers and vegetables.